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Affirm Stock Takes Breather After Breathtaking Post-IPO Share Price Rise; Inked Deals With Walmart, Peloton, Amazon, Others

On Monday, a key rating for Affirm Holdings (AFRM) made a huge leap to an important milestone. The Relative Strength (RS) Rating for Affirm stock leapt to 94, up from 76 the day before. Its stock soared after its recent IPO, but it took a step back Monday.

Still, the 94 RS Rating means that Affirm stock has outperformed 94% of all stocks in IBD’s database since the company went public in January. History shows that the market’s biggest winners tend to have an RS Rating north of 80 at the beginning of a new price run.

Affirm Stock Jumped 100% After IPO

Affirm stock fell for a few months after its IPO, among continued losses despite rising revenue. Its stock hit an intraday low of 47.12 on May 13. It then turned up sharply, hitting a 126.46 high on Sept. 10. The rise came as the buy now, pay later platform specialist inked deals with the likes of Walmart (WMT), Peloton (PTON) and, recently, Amazon.com (AMZN), among others. Affirm was trading at 110.62 Monday afternoon, down 10.5% for the day.

The company lost 52 cents per share last quarter on a 71% year-over-year surge in revenue, to $2161.8 million.

Affirm Holdings earns the No. 14 rank among its peers in the Finance-Card/Payment Processing industry group. Dlocal (DLO), Square (SQ) and CPI Card Group (PMTS) are among the top 5 highly rated stocks within the group.


Looking For Winning Stocks? Try This Simple Routine


While the stock is not near an ideal buying range right now, see if it is able to form and break out from a proper chart pattern, such as a three-weeks-tight, or rebound off of its 50-day or 10-week line.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD’s proprietary  Relative Strength Rating tracks market leadership by showing how a stock’s price action over the last 52 weeks compares to that of the other stocks in our database.

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